AMD lowers outlook for 2Q

AMD said that revenue for the second quarter is expected to be lower than previously guided.

The company now expects second quarter (ends June 27) revenue to decrease approximately 8 percent sequentially (previous guidance of down 3 percent, plus or minus 3 percent). The sequential decrease is primarily due to weaker than expected consumer PC demand impacting the company's Original Equipment Manufacturer (OEM) APU sales, AMD states.

The company anticipates non-GAAP gross margin to be approximately 28 percent, compared to the previous non-GAAP guidance of approximately 32 percent primarily due to a higher mix of Enterprise, Embedded and Semi-Custom segment sales and lower than anticipated Computing and Graphics segment APU unit volumes.

Additionally the company anticipates GAAP gross margin to be further impacted by a one-time charge of approximately USD 33 million associated with a technology node transition from 20 nanometer (nm) to FinFET. The company started several product designs in 20nm that will instead transition to the leading-edge FinFET node.